Volata Company began operations on January 1, 2019. In the second quarter of 2020, it adopted...

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Volata Company began operations on January 1, 2019. In the second quarter of 2020, it adopted the FIFO method of inventory valuation. In the past, it used the LIFO method. The company's interim income statements as originally reported under the LIFO method follow: 2019 1stQ 2ndQ Sales Cost of goods sold (LIFO) Operating expenses $ 34,000 6,400 4,400 Income before income taxes Income taxes (25%) $ 23,200 5,800 $ 36,000 7,400 4,600 $ 24,000 6,000 3rdQ $ 38,000 8,200 5,000 $ 24,800 6,200 4thQ $ 40,000 2020 1stQ $ 42,000 9,400 5,400 $ 25,200 6,300 Net income $ 17,400 $ 18,000 $ 18,600 $ 18,900 10,900 5,600 $ 25,500 $ 19,125 6,375 If the FIFO method had been used since the company began operations, cost of goods sold in each of the previous quarters would have been as follows: 2019 2020 Cost of goods sold (FIFO) 1stQ $ 6,200 2ndQ $7,000 3rdQ 4thQ 1st0 $ 7,600 $ 8,400 $9,800 Sales for the second quarter of 2020 are $44,000, cost of goods sold under the FIFO method is $11,400, and operating expenses are $5,800. The effective tax rate remains 25 percent. Volata Company has 1,000 shares of common stock outstanding. Prepare a schedule showing the calculation of net income and earnings per share that Volata reports for the three-month period and the six-month period ended June 30, 2020. (Round "Earnings per share" answers to 2 decimal places.) Net income Net income per common share Three Months Ended June 30 Six Months Ended June 30 2019 2020 2019 2020 Volata Company began operations on January 1, 2019. In the second quarter of 2020, it adopted the FIFO method of inventory valuation. In the past, it used the LIFO method. The company's interim income statements as originally reported under the LIFO method follow: 2019 1stQ 2ndQ Sales Cost of goods sold (LIFO) Operating expenses $ 34,000 6,400 4,400 Income before income taxes Income taxes (25%) $ 23,200 5,800 $ 36,000 7,400 4,600 $ 24,000 6,000 3rdQ $ 38,000 8,200 5,000 $ 24,800 6,200 4thQ $ 40,000 2020 1stQ $ 42,000 9,400 5,400 $ 25,200 6,300 Net income $ 17,400 $ 18,000 $ 18,600 $ 18,900 10,900 5,600 $ 25,500 $ 19,125 6,375 If the FIFO method had been used since the company began operations, cost of goods sold in each of the previous quarters would have been as follows: 2019 2020 Cost of goods sold (FIFO) 1stQ $ 6,200 2ndQ $7,000 3rdQ 4thQ 1st0 $ 7,600 $ 8,400 $9,800 Sales for the second quarter of 2020 are $44,000, cost of goods sold under the FIFO method is $11,400, and operating expenses are $5,800. The effective tax rate remains 25 percent. Volata Company has 1,000 shares of common stock outstanding. Prepare a schedule showing the calculation of net income and earnings per share that Volata reports for the three-month period and the six-month period ended June 30, 2020. (Round "Earnings per share" answers to 2 decimal places.) Net income Net income per common share Three Months Ended June 30 Six Months Ended June 30 2019 2020 2019 2020